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HomeMy WebLinkAbout2004-11-6892274 ORDINANCE NO. 2004-11-6892 ORDINANCE OF THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF THE CITY OF PADUCAH, KENTUCKY EDUCATIONAL DEVELOPMENT REVENUE BONDS (PADUCAH COLLEGE PROJECT), SERIES 2004, IN THE PRINCIPAL AMOUNT OF $900,000. WHEREAS, the City of Paducah, Kentucky, (the "City"), a municipal corporation of the second class, in McCracken County, Kentucky, is authorized and empowered by Sections 103.200 to 103.286, inclusive, of the Kentucky Revised Statutes, as amended (the "Act"), to issue bonds and lend the proceeds of the bonds to any person to defray the costs of a "building" project as defined in the Act; and WHEREAS, Paducah Junior College, Inc., a Kentucky nonprofit corporation (the "Borrower"), desires to acquire, construct and equip additional educational facilities on a site described in the Trust Indenture (hereinafter identified), through the assistance of the City by the issuance of City of Paducah, Kentucky Educational Development Revenue Bonds (Paducah College Project), Series 2004 (the 'Bonds"), pursuant to the Act, which "building" project has been and will continue to be used and leased by the Borrower to the West Kentucky Community and Technical College as part of its existing educational facilities, and for uses incidental thereto (the "Project"); and WHEREAS, under the terms of a proposed Loan Agreement (hereinafter identified), the Borrower has agreed to pay the City sufficient amounts in ample time to pay the principal and interest requirements of the Bonds, and which payments shall be pledged, together with the Loan Agreement itself, as security for the payment of the principal of and interest on the Bonds; and WHEREAS, the City has found that the operation of the proposed Project will tend to I relieve existing conditions of unemployment in the City and the surrounding area and will otherwise promote the general welfare and educational and economic development of the City and all of its citizens and inhabitants; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: 1. Authorization of Bonds. For the purpose of paying the costs, not otherwise provided, of financing the Project, the City hereby authorizes and approves the issuance of its City of Paducah, Kentucky Educational Development Revenue Bonds (Paducah College Project) Series 2004 in the aggregate principal amount of $900,000 (the 'Bonds"), which amount shall be the maximum amount of such Bonds to be outstanding at any one time, issued as fully registered Bonds, in said amount, which Bonds may be exchanged for and/or reissued, as more fully provided for in the Trust Indenture hereinafter approved. The Bonds shall bear interest at such rate and shall be payable in such amounts and at such times as specified in the Bond Purchase Agreement (hereinafter approved), all as agreed upon by the City, the Borrower and the Purchaser (hereinafter identified), pursuant to Section 103.230 of the Kentucky Revised Statutes; provided, however, that the maximum rate of interest on the Bonds shall not exceed seven percent (7%) per annum. 2. Approval and Authorization of Execution of Various Documents; Loan Agreement; Trust Indenture; Bond Purchase Agreement. The following documents substantially in the form attached to this Ordinance, are hereby approved, subject to such minor changes, changes of dates, insertions or omissions as may be approved by the Mayor, such approval to be conclusively evidenced by the execution of said documents, in order to effectuate the purposes of this Ordinance; and the Mayor is hereby authorized to execute and acknowledge same for and on behalf of the City; and the City Clerk is authorized to attest same and to affix thereto the corporate seal of the City. Said documents are hereby ordered to be filed in the office of the City Clerk, labeled respectively, Exhibits A through C, as identified below, and each of said documents is ordered to be recorded with this Ordinance in the official records of the City: ,� ,_,m. ,,:,..,e�bL gee, :,mh�mi�um.,:r-m m.. �� m „rAilm•c�.nxi� i6 mile�led ue:i ���a�6u.J�.a m.. a..:.,...,....,�lm�,��cv�.ed .....+...�r �. I� 275 (a) The Loan Agreement (the "Loan Agreement"), to be dated as of October 1, 2004, between the City and the Borrower. (Exhibit A) (b) The Trust Indenture (the "Indenture"), to be dated as of October 1, 2004, between the City and Union Planters Bank (the 'Bank"). (Exhibit B) (c) The Bond Purchase Agreement (the 'Bond Purchase Agreement") between the City and Union Planters Bank (the "Purchaser"), and also approved by the Borrower, providing for the sale of the Bonds to the Purchaser at the aggregate price, at the interest rate stated therein, and upon the respective terms and conditions set forth in said Bond Purchase Agreement. The approval of said Bond Purchase Agreement by the Borrower and a separate letter from the Borrower to the City evidences the request of the Borrower that the Bonds be sold at private sale upon a negotiated basis, as authorized by KRS 103.230. (Exhibit C) 3. Disbursement of Proceeds of Bonds. The Borrower and the Trustee are authorized to carry out the procedures specified in the Indenture for the financing of the Project and for the payment from time to time of the costs of such financing and related expenses as same progresses. 4. Revenues of the Project. The revenues of the Project, including the Loan payments to be received by the City under the terms of the Loan Agreement, are determined to be sufficient to pay the principal of and interest on the Bonds, together with the fees and expenses of the Trustee, as the same become due and payable; and all of said payments and any and all other payments, revenues and proceeds received under the Loan Agreement in connection with the Project are hereby pledged to secure all such payments, and in addition, for such other purposes as are more fully specified in the Indenture. 5. Execution of Bonds. The Bonds shall be executed in the manner provided in the Indenture and shall be delivered to the Trustee for proper authentication and delivery by the Trustee to the Purchaser, with instructions to that effect, as provided in the Indenture. 6. Mayor and Other City Officials to Take Any Other Necessary Action. Pursuant to the Constitution and Laws of the Commonwealth of Kentucky, the Mayor, the City Clerk and all other appropriate officials of the City are hereby authorized and directed to take any and all further action and to execute and deliver all other documents as may be reasonably necessary to effect the issuance and delivery of the Bonds. 7. Limited Obligation. The Bonds shall not be a general obligation of the City but a limited obligation payable solely from the amounts payable under the Loan Agreement and other revenues of the Project. Neither the City, the Commonwealth of Kentucky nor any other political subdivision of the Commonwealth shall be obligated to pay the principal of or interest on such Bonds or other costs incident thereto except from the revenues of the Project pledged therefor. Neither the faith and credit nor the taxing power of the City, the Commonwealth or any political subdivision of the Commonwealth is pledged to the payment of the principal of, or premium, if any, or interest on the Bonds or other costs incident thereto. 8. Compliance with Federal Arbitrage Requirements. The City has approved the covenant in the Indenture that sums derived from the proceeds of the Bonds shall not be invested in a manner which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 the Code and the applicable Regulations thereunder. Prior to or at the time of delivery of the Bonds, the Mayor, the City Clerk and/or the City Treasurer, who are jointly and severally charged with the responsibility for the issuance of the Bonds, are authorized to execute the appropriate certification with reference to the matters required and contemplated by the Code and the applicable Regulations, setting out all known and contemplated facts concerning the anticipated construction, expenditures and investments, including the execution of necessary and/or desirable certifications contemplated by the Code and the applicable Regulations in order to assure that interest on the Bonds will be exempt from 276 all federal income taxes and that the Bonds will not be treated as "arbitrage bonds". Such officers are entitled to rely upon information furnished by the Borrower in making such certifications and representations unless they, or either of them, shall be aware of any fact or circumstances which would cause such certifications or representations to be questioned. Notwithstanding anything herein to the contrary, neither the City nor any official of the City shall be liable for any act or omission of the City or such official, to the Borrower, the Trustee, or any owner of the Bonds for failure to comply with any covenant or certifications herein made or made in any of the documents relating to the issuance of the Bonds and the Loan Agreement and the Indenture shall so provide. 9. Public Approval Requirement. The enactment of this Ordinance shall be construed to constitute the public approval requirements of Section 147(f) of the Internal Revenue Code. 10.Designation of Bonds as Qualified Tax-exempt Obligations. Pursuant to Section 265 of the Internal Revenue Code of 1986, the City hereby declares that it does not reasonably anticipate issuing more than $10,000,000 of qualified tax-exempt obligations during the calendar year of 2004 and that it designates the Bonds as "qualified tax-exempt obligations". 11.Severability Clause. If any section, paragraph, clause or provision of this Ordinance shall be ruled by any court of competent jurisdiction to be invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the remaining provisions hereof. 12. Captions of Clauses. The captions of this Ordinance are for convenience only and are not to be construed as part of this Ordinance nor as defining or limiting in any way the scope or intent of the provisions hereof. 13.Provisions in Conflict Repealed. All ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this Ordinance, are, to the extent of such conflict, i hereby repealed. 14. Effective Date of Ordinance. This Ordinance shall take effect from and after its enactment, adoption, approval and publication of Notice of Enactment and Summary hereof (including the title and a certified summary of this Ordinance), which publication is hereby approved and ordered to be made by the City Clerk, pursuant to KRS Chapter 83A and KRS 103.210. Introduced and given first reading by the City Commission on November 9, 2004. Given second reading and enacted by the City Commission on November 23, 2004. CT Attest: aiiGr X&ck l City Clerk Published by The Paducah Sun, November 29, 2004 .L...•.bu.c��al��:ee'e.uie�L.�.a�:.,:u. �u,�a, h.. zsalll���.en:i:. .. tl iuv�wwd:�ay�a���vusmYiaeea,seWhnum��Few:e,y:�:,��.�s:��.a�L�,,dLa� - , .,...... i cdrsw �..i.�a.�ea»ymu:n.�vuus�i-�ul�w .. ee:: 277 CERTIFICATE OF CITY CLERK I, Tammy Brock, hereby certify that I am the duly qualified and acting City Clerk of the City of Paducah, Kentucky, that the foregoing Ordinance is a true copy of an Ordinance introduced and given first reading on November 9, 2004 and given second reading and enacted by the City Commission of said City, signed by the Mayor of said City, and attested under seal by me as City Clerk, at a properly convened meeting of said City Commission held on November 23, 2004, as shown by the official records in my custody and under my control, that Notice of the Enactment and Summary of said Ordinance has been ordered to be published as required by law (KRS Chapter 83A and KRS 103.210), and that said Ordinance appears as a matter of public record in the official City records. I further certify that said meetings were duly held in accordance with all applicable requirements of Kentucky law, including KRS 61.810, 61.815, 61.820 and 61.823, that a quorum was present at each of said meetings, that said Ordinance has not been modified, amended, revoked or repealed, and that same is now in full force and effect. IN WITNESS WHEREOF, I have hereto set my hand as City Clerk and the official seal of the City this 23rd day of November, 2004. (Seal of City) \ord\Bond-PJC City Clerk P10